sales promotion
TRANSCRIPT
1
Sharavan Aravind Kumar G
BANKING
Sales Promotion• Sales promotions have become dominant in
many industries, due to support existing brandscreate excitementreflect to market segmentation
3
Sales Promotion in the Marketing System
• Due to an institutional setup, sales promotions not only address consumers, but the trade, as well.
• It can support the willingness to carry and merchandise the product by retailers or distributors
Consumer Promotions
4
ICICI Bank Loyalty program
Loan offers
Customer Centric promotion
5
Consumer promotions
• Product based (bonus packs and samples)
• Price based (price, coupons, rebates, financing, frequency)
• Premiums
• Place based (displays)
• Games and sweeptakes
Referral program by Citi and HDFC for credit cards
6
Trade promotions• Product based (free goods, returns)
• Price based (allowances, payment terms)
• Place based (slotting fees, display fees)
• Advertising based (coop ads, selling aids)
• Sales based (incentives, contests, prizes)
Trade promotion by giving cash back if you buy from a network retail store or e-commerce site.
7
Promotional Objectives
• Separated by time, consumer segmentation and required impact
• Promotions rarely stop a declining sales curve
• It is very easy to lose the promotional gains made if your promotion has not been effective in retaining new customers. So the product has to speak for itself.
8
Promotional Objectives
• Short run
1. Current CustomersBuy MoreBuy Now Be Loyal
2. Occasional Customers
3. Non-Customers
• Long run
1. Increase awareness
2. Change image
Joint Promotion HSBC and Sri Lankan Airlines.
9
Criticism of Promotions
• Do not help to build image
• Increase consumer price sensitivity
• Have strong impact on purchase timing
10
Image-Building Promotions• Image-building promotions aim to effect
brand image through creating associations, other than low price
• Strategically correct contests and sweepstakes
• Tie-ins with other companies
11
A different strategy
• EDLP - Every Day Low Price, as a strategy was pioneered by Procter and Gamble, to overcome production volatility (pantry filling effects)
• HI-LO - High-Low, is practiced by the industry and trade, because it creates higher excitement